Home > Blossary: Options Terms and Definitions
Option is the right, but not the obligation, to buy or sell a specific amount of a given stock, commodity, currency, index, or debt, at a specified price during a specified period of time. This glossary will give you insights into the world of Option.

Category: Business

20 Terms

Created by: zzcgood

Number of Blossarys: 7

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Method of option pricing that assumes the value of an asset increases and decreases by fixed proportions at a predictable schedule. Possible values of the asset can be predicted starting at the ...

Domain: Banking; Category: Investment banking

Definitions (2) 1. A group of several securities created for the purpose of simultaneous buying and selling. Baskets often play a role in index arbitrage, program trading and hedging. 2. A ...

Domain: Banking; Category: Investment banking

A type of exotic option that provides a payoff if the value of the underlying reaches or does not reach a predetermined price or "barrier level". Barrier options are characterized as "knock in" if ...

Domain: Banking; Category: Investment banking

The difference between the strike price of a stock option and the market price of the underlying stock when the option is exercised, times the number of shares purchased. The bargain element is not ...

Domain: Banking; Category: Investment banking

An unusual futures and option market situation which occurs when an underlying asset in the commodities market is heavily in demand and causes nearby contracts to have a higher price than more ...

Domain: Banking; Category: Investment banking

A type of stock option used on Asian exchanges. The strike price in this type of option is based on the average asset price during a certain period of time, defined by a range of dates called the ...

Domain: Banking; Category: Investment banking

An investing derivative whereby the holder has a claim to one unit of the underlying asset if the market price of the asset is below the strike price of the option. If the market price is above the ...

Domain: Banking; Category: Investment banking

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